Ladies and gentlemen, we welcome you all to the Q2 NH1 FY2026 earnings conference call of Jyoti CNC Automation Limited, hosted by ICICI Securities. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements do not guarantee the future performance of the company and may involve risks and uncertainties that are difficult to predict. Now, I hand the conference over to Mr. Mohit Kumar from ICICI Securities. Thank you, and over to you, sir.
Thank you, Shiloka. Good evening. On behalf of ICICI Securities, I have come to the Q2 FY2026 earnings conference call of Jyoti CNC Automation Limited. Today, we have with us Manager CNC Automation,
Mr. Mohit?
Yeah, hi.
Could you please repeat your introduction? You are not audible at the moment.
Hello?
Yes, sir. Please go ahead.
Hello. Yeah. Thank you, Shiloka. Good evening, everyone. On behalf of ICICI Securities, we are coming on to Q2 FY2026 earnings conference call of Jyoti CNC Automation Limited. Today, we have with us from the management, Mr. Parakramsinh Jadeja, Chairman and Managing Director.
Thank you, Mohit. Good evening, everyone, and a very welcome to our Q2 and H1 FY2026 earnings conference call. Along with me, I have a senior management team and SGA, our investor relations advisors. Results and presentation have been uploaded on the stock exchange. I hope everyone has had a chance to go through the same. India is currently witnessing a strong capital investment cycle, supported by favorable government initiatives such as PLI schemes and various state and central programs that encourage manufacturing. These efforts are reshaping the country's industrial landscape. While India has traditionally been known for its strength in the service sector, the last decade has marked a clear shift with the growing focus on becoming auto-nearby and building domestic manufacturing competitiveness. This momentum is particularly visible in sectors like defense, electronics manufacturing services, semiconductors, and automotive, where the capacity creations and technology investments are accelerating.
In this environment, the role of mother machine manufacturers, those who build precision machines that in turn produce other machine tools, becomes especially important. As industries expand, the need for high-quality CNC machine tools rises significantly. Today, the Indian CNC machine tool market is estimated around $3.5 billion in annual demand. Yet, nearly 60% of this requirement is still met through imports. This highlights both a challenge and meaningful opportunity. India must reduce dependency on external suppliers and develop strong domestic manufacturing capabilities in these strategic segments. At Jyoti CNC, we see ourselves at the center of this transformation. Our vertically integrated manufacturing setup, strong in-house R&D, and deep understanding of high-growth industries give us a clear edge. We not only design and manufacture advanced CNC machines, but we do so with precision, reliability, and cost competitiveness suited to global standards.
Our acquisition of Huron, a global leader in high-precision machining, has further strengthened our technological edge and helped us expand our footprint across international markets. Over the years, this strong foundation has allowed us to expand across a wide range of industries, including high-growth sectors such as aerospace, defense, and EMS. We have built relationships with customers of high repute, both in India and overseas, and have steadily increased our wallet share with marquee clients by delivering reliable performance, precision, and service supports. We believe this is our moment, not just to grow as a company, but to contribute meaningfully to India's journey of industrial self-reliance. By building world-class machines in India, for India, and the world, we aim to be among the leading machine tools manufacturers globally. Now, let me share what we are doing at Jyoti CNC to prepare for the next phase of our growth.
First, we believe that our people are the heart of our progress. As we scale up, we need more than 1,000-plus skilled engineers in coming years. To support this, we are continuously investing in training, upskilling, and grooming our workforce. We are also setting up our own training institute to develop talent in-house so that our people grow with the company and companies grow with the people. Second, as announced, to meet the rising demand we are seeing from both traditional industries as well as new edge sectors, we need to expand our manufacturing capacity based on our current order pipeline and market outlook. We are scaling our production capacity from 6,000 machines per annum to 16,000 machines per annum by September 2026. This will ensure that we are ready to serve customers quickly and efficiently without compromising on quality.
Third, as I mentioned in the previous call, recent geopolitical developments have led to higher demand from defense and allied sectors from European customers. We have been engaging closely with these customers and recently participated in a major global exhibition called the EMO in Germany, where the sentiments and outlook were very positive. In summary, we are expanding capacity, strengthening our talent base, deepening our capabilities, and preparing to serve a much larger and more global customer base. We remain financially disciplined and further focused, and we are confident of delivering sustainable growth in years to come. Coming to the financial and operational performance of Q2 and H1 FY2026, we reported a strong consolidated revenue growth of 17.9% for the quarter, standing at INR 508 crores.
Our performance for this first half of the year was also strong, with consolidated revenue of INR 918 crores in H1 FY2026 compared to INR 792 crores in H1 FY2025, reflecting a growth of 15.8%. In terms of revenue contribution across the industries in quarter two, 36% came from aerospace and defense, 26% from auto and auto components, 21% from general engineering, and the remaining 17% from the other areas. Our order intake for quarter two FY2026 stood at INR 619 crores. This includes 44% from aerospace and defense, meaning INR 272 crores, 23% from auto and auto components, INR 142 crores, 22% from general engineering, INR 136 crores, and 11% from the other sectors. The capacity utilization for quarter two FY2026 was 88%. Speaking of our current order book, it remains healthy and well-diversified at INR 4,546 crores, reflecting steady demand and continued customer confidence.
The industries-wise breakup is as follows: 40% of aerospace and defense, 20% of general engineering, 17% of auto and auto components, 15% from EMS, 4% from the die and mold, and balance from the other sectors. Coming to the margin, EBITDA for Q2 FY26 stood at INR 124.6 crores as a growth of 17% compared to the same period last year. EBITDA margin was 24.5%, which is broadly in line with last year, primarily due to the increase in employee expenses and other expenses. It is in line with our near-to-guidance over there. Profit after tax for Q2 FY2026 stood at INR 85.5 crores compared to INR 75.9 crores in Q2 FY2025, reflecting a growth of 13%. We believe we are in a strong position to build on this momentum. The industry opportunity is large. Our order book is healthy, and our capacity expansion and talent development efforts are progressing well.
With our vertically integrated manufacturing capacities, strong R&D focus, and expanding presence across high-growth sectors, we are confident of strengthening our leadership in the Indian market and growing our footprint globally. We remain committed to discipline execution, customer trust, and building a world-class machine in India for India and the world. We may now open the floor for questions and answers.
Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone phone. If you wish to remove yourself from the question queue, you may press star and two. Ladies and gentlemen, you are requested to use handsets while asking a question. We will wait for a moment while the question queue assembles. The first question comes from the line of Harshit Patel from Equirus Securities. Please go ahead.
Hi, thank you very much for the opportunity, sir. Sir, firstly, on our capacities, you have mentioned that our overall utilization currently stands at about 88%. And our...
For this quarter.
For this quarter, yes, sir. Our expansion from 6,000 machines to 16,000, that will become operational sometime in September 2026. In this interim period of three to four quarters, how do we plan to grow meaningfully, given that we have such a huge order book?
Yeah, so that's the only constraint today, Harshit, with us. We are trying to, let's say, optimize all our processes and everything and trying to stretch. Today, this quarter, we have reached 88% of utilization. The next two quarters, we will have something a little bit more than our capacity. We will grow more the capacity over there. Until the full capacity will come into our utilization, we have to wait for the further more growth over there.
Understood. Sir, secondly, our order-integrated momentum has continued in the second quarter as well. For the first half of FY2026, we have received almost INR 425 crore worth of orders from aerospace and defense alone. Could you explain where these orders have come from? Out of these INR 425 crore, what would be the India contribution, and what would be from Europe and other geographies? Also...
Yeah, so...
Yes.
Yeah, complete please.
Sir, just a follow-up to that, given that we are about to complete our de-bottlenecking exercise at Huron, and we have kind of doubled our production capacity over there, if you can give us the execution roadmap over.
Harshit, basically, out of these INR 425 crores, the first time we were discussing all the time to, let's say, the India is coming in a variety more and more of that, okay? In these two quarters, and particularly in the last quarter, we have received close to INR 180 crores' worth of orders only from the Indian defense area there, all our ordnance factories and all. The rest, others are, we have global customers from Europe, even from China, even from Turkey, and mainly from Germany. The larger component has come from the Indian domestic player over here. This is about the order book intake to your first question, Father. Regarding the second question, the Huron facility has been switched on now. It started our operational from September.
We will see the witnessing over there on a revenue conversation will come on the last quarter largely over there. Because the process time of assembly of the machine is close to four to six months. The first batch of production is already on the floor, and we have started. It is going to be executed there. All this capacity will be utilized and everything. The first fruits we will see in the last quarter of this year, it means the next quarter. Following the next year completely, we will come into a full-fledged utilization over there. Hope this will be in line with your questions.
Yes, sir. Thank you. Thank you very much for answering my questions. I'll come back in a bit.
Thank you.
Thank you. Participants who wish to ask their questions may press star and one. The next question comes from the line of Aniket Jain from YES Securities. Please go ahead.
Good evening, sir. Hope you're doing well. Actually, I wanted to check on there's a material increase in employee costs this quarter. I believe that it is mainly due to the expansion plan that you are currently undergoing. When do we plan to complete this hiring program that you are currently undergoing? That is question one.
Hiring?
When will we be completing the hiring program? When will you stop hiring additional employees?
Aniket? Aniket ?
Yes. Yes, sir.
Yeah. Aniket, already we have started hiring last year. Gradually, every quarter, you see this, our manpower cost also is rising. Because already, based on the next year capacity, we are looking at the people in our factory one and one and a half years back. Today, we already hired the people. Still, we are hiring, but not much. Almost 80%-90% people are already on the roll there now. Okay?
Understood, sir. And sir, the second question would be on the EMS revenue. I see that this time you have booked about INR 25 crores-INR 30 crores of revenues in EMS. Have the deliveries resumed now, or will these continue going forward? What is the plan to when will this order backlog be fully delivered?
Basically, in our last call also, I was discussing that it has been started slowly, and we are expecting to grow in the last quarter. Okay? Third quarter also will be some of the things like that. The larger we are expecting from the last quarter execution will be there.
Got it, sir. I'll get back to the queue for the questions. Thank you.
Thank you. Participants who wish to ask their questions may press star and one on your touchstone phone. The next question is from the line of Anuj from Kotak Securities. Please go ahead.
Hello.
Yes, sir. Are you audible?
Yeah. Congratulations on both sides of number.
Thank you.
I just wanted to understand what are the kind of volume growth that we are seeing in fiscal 2026 and for the full year as well?
What are the?
Volume growth we are seeing for the first half of fiscal 2026, and what are our expectations for full year 2026, sir?
Okay. So generally, we don't, let's say, talk on the numbers directly. Okay? We don't give this kind of a guideline directly on that, okay, on a forward-looking. Let's say the growth momentums are going to be maintained. Usually, our tradition into the first half and second half, okay, is more or less 40x-60x kind of a ratios are there. Okay? Always the third and fourth quarter is going to be the highest executions we are looking in terms of numbers over there for our traditional industrial practices on this manufacturing of machine tools there.
Understood, sir. Sir, on the plus side, our margins are one of the best in the industry. To what extent are we vertically integrated to have achieved these kind of margins?
Basically, we are fully vertically integrated in terms of our manufacturing side. It's on the cost side. Let's say we do our castings. We do all critical part machining. In a machine tool, the most critical assembly is generally the spindles. We call it the turrets. We call it the rotary tables. We call it the pallet changer, tool changer. And many of this precision and sheet metal manufacturing and all like that. Generally, the industries, these kind of higher-end assemblies and all people are importing from the Europeans and Japanese areas like that. There, in Jyoti, we are highly integrated. That's the adding, the value additions we are reaching over here much better from the industry standard. As well as our, let's say, the application point of view, let's say we do a lot of tooled-up machines.
We do a lot of customer-centric machines and supporting to the customers. There, we are able to value additions are much better. Third is, let's say, the product mix. Okay? We are having a very large product baskets and variety of products. Let's say the machine value, the minimum machine value in our product basket is INR 1,000,000. The biggest machines I'm supplying is to INR 200,000,000. Okay? This kind of a product mix is allowing me to have a better margin compared to the industry standards there, what the people are having there.
Understood. That is very helpful. Thank you.
Thank you.
Thank you. As a reminder, participants who wish to ask their questions may press star and one on their touchstone phone. The next question comes from the line of Yash Patel from Kotak AMC. Please go ahead.
Sir, I wanted to ask you a question about the Huma control panel that you are developing. What would be the margin impact after this panel has been developed? Are you going to use this panel in the extended capacity of 16,000 and all the 16,000 machines that you are going to develop?
Thank you. Yes. See, Huma is our basically operating systems. We call it HMI. It's a front-end for my customers there. Okay? So today, this Huma is in top of the what we bought a controller from Fanuc or Siemens. So we have made this HMI common for all these two and make more user-friendly to the customers. In the future, yes, we are going to develop our own controllers, drives, motors. That's already we are in progress. We are under the PLI scheme. We are also going to be applying for that. With that, once all the hardware and software are completely integrated with the Huma, and we are going to develop this, yes, we are going to utilize this all from all our 16,000 machines. And we are expecting to gross margin to be increased close to a 4%-5% over there.
Okay. Thank you so much, sir.
Thank you.
Participants, if you wish to ask your questions, you may press star and one. The next question comes from the line of Kamlesh Baghmar from Lotus Asset Managers. Please go ahead.
Thanks for the opportunity. Sir, would you please give the breakup of machines sold in this quarter and along with the revenue?
What? Kamlesh, right?
Machines sold during the quarter with the breakup of revenue.
Okay. Yeah. One moment, please. So we have sold 1,315 machines in quarter two at an average realization of INR 38.62 lakh.
Sir, breakup between, let's say, mid-high and entry-level along with the revenue?
Yeah. So basically, 200 and.
Thank you.
Machine. Number of machines. Yeah. So value-wise, INR 252 crore. Machine-wise, 1,237 machines. It's an entry-level product. Mid-level is close to 69. At 69, number of machines also close to 69. Average value is INR 1 crore. A high value is 164 machines with the machine is 9. Average machine is INR 18.26 crore. Okay? Total is 1,315. This is the breakup.
Okay. Secondly, on the employee cost, employee cost has risen by roughly around 43% year- over -year, 19% quarter over quarter. If I see the number of employees, they are, let's say, stable for the last three quarters at 3,500.
Correct.
Count.
So why are we seeing such a sharp increase in the staff cost?
Yeah. So basically, Kamlesh, this year, let's say, the compensation quarter, we have compensated the salary increase of the people in the second quarter. It has been implemented from the first April and given all the arrears and everything. So settle down like that. That's why the cost is you are seeing sharp rise in this quarter.
Where can we see it normalizing? And even on the other expenses side?
Basically, now it is with this, this is normal, the cost of the manpower now. In terms of this quarter, you have seen a little bit more expenses. This is a jump due to the two to three parameters. One is in manufacturing activities has been increased greatly, so that the cost has been increased. That will be compensated with the next sort of dispatches on the next two quarters. Marketing, let's say this is one of the biggest events we have participated in Germany, is the highest cost for us. Because of that, the marketing cost has increased. These expenses are like that on this quarter.
Okay. Okay. And sir, lastly, your 10,000 machine capacity expansion. How would that be phased out? It would be coming in September 2026. How would the ramp-up be? Over the, let's say, after a quarter from September 2026, would it get, let's say, 10,000 machines? Would it get utilized at 20%-25%? How would the ramp-up be?
I have given you the in the past also the answer similarly. This ramp-up will be, let's say, we are looking to be a growth continuation for the next three to four years. We would like to maintain our trajectory between 30%-35%. This will help us. We will maintain this our growth trajectory for the next two to three years based on this expansion project.
Thank you, sir. And sir, what is our target on the machines? Let's say in this first half, we have sold roughly around 2,430 machines. So for the year as a whole, where do we see, let's say, 95% utilization level for the rest of the year?
Definitely we will cross 90% numbers. We will cross 90% +.
Great, sir. Thanks a lot, sir. Thanks a lot.
Yeah.
Thank you. Participants, if you wish to ask your questions, may press star and one. The next question comes from the line of Akshay from AK Investment. Please go ahead.
Hello, sir. Thanks for giving me the opportunity. Am I audible?
Yeah. Yes.
Yeah. Okay, sir. First of all, congratulations for the good set of numbers. Sir, my first question is about Huron capacity. So what was the Huron capacity before the expansion and what it is currently? And what kind of average realization that we have over there for one machine, for average machine?
Yeah. So basically, the Huron in terms of the capacity, there was a EUR 30 million-EUR 32 million deliverables from the model mix over there. Okay? And now with this capacity expansion, we have reached out to close to EUR 70 million-EUR 75 million top line we are able to execute it over there, okay, based on the model mix there.
Okay. Based on this new expanded capacity, when can we reach to 80%-90% utilization over there in next how many years?
In Huron also, we are expecting to grow year on year close to 30%-35% there.
Okay, sir. So at a consolidated level, we will grow by 30%-35% for the next five years, right?
Correct.
This year itself, we are expecting similar kind of growth in this financial year as well?
Absolutely. Absolutely.
Okay. Okay. Sir, my second question is okay. That is already answered. Thank you so much, sir. All the best for the future.
Thank you. Thank you very much.
Thank you. Participants, if you wish to ask your questions, you may press star and one. The next question comes from the line of Yash Patel from Kotak AMC. Please go ahead.
[Audio distortion]
Mr Yash, Mr Yash, you are not audible. Mr. Yash?
Is it better now?
Yes, sir. Please go ahead.
Sir, this is Yash's screen.
Sir, Yash, still not audible? Can you please reconnect and use handsets and get back to the queue?
We can do it on screen.
For better communication.
Is this better now?
Go ahead. Sir, Yash, still not audible? Please rejoin the queue. The next question comes from the line of Jayesh Shah from OHM Portfolio Equity Research. Please go ahead.
Hi. Am I audible?
Yes.
Okay. Sir, thanks for the opportunity. I just had this one question. You're talking of 30%-35% CAGR growth, but we see that your capacity constraint for this year and perhaps first half of next year, which is why in the first half, you have grown only by 15%. How much is the realistic growth expectation for this year and next year? Because 30%-35% looks difficult, right?
Jayesh, basically, always our first and second half is to be a little different. Okay? Based on our capacity utilization and the model mix, we are still on the track as per the delivery and the target to be achieved on the second half and this year. Because of, let's say, in this quarter, our Huron capacity comes in a picture.
We will see the last quarter that numbers also giving us a better add-on value to us on our revenues over there here. Okay? That capacity is.
That means
we will have much better product mix, if not capacity utilization.
Correct. And based on the total utilization, we are still on track to reach out our target what we are anticipating on this year there. Okay? The next year, yes, the next year is more challengeable because now the 30%-35% growth from here. Now our capacity is absolutely on track this time. Okay? We are anticipating some of the things will start utilizing a little early there also. Okay?
I see. We expect the expansion by September 2026. How fast can you ramp up the additional capacity?
Basically, there are some assembly building, machine shop buildings, and everything is getting ready, basically starting from, let's say, January, February onwards. Okay? All the installations and everything is going to start from, let's say, a couple of months early before September there. Okay? There are many things that today is our bottleneck. It is going to resolve. We see the second quarter will be a good quarter for us to utilize some of the capacity over there. Then gradually, we will ramp up on the third and fourth quarter of the next year there basically.
I see. Thank you very much and best of luck.
Thank you. Thank you.
Thank you. Participants, if you wish to ask your questions, may press star and one. The next question comes from the line of Aniket Jain from YES Securities. Please go ahead.
Sir, I wanted to check that the other financial assets have increased materially in this H1 from INR 538 crores to almost INR 673 crores. I believe a good portion of that is the unbilled revenues. What is driving this increase in unbilled revenues and why are we not able to bill these to customers and then show that as trade receivables?
You see that this quarter, the numbers of nine machines and 164, these are the very large machines. Okay? It is partially built up like that. Okay? Now we are enhancing the capacity over here as well as Huron there also now started there for the large machines there. You will see now we reached to a stabilization level and then regularly month-on-month sales will come on the pictures over there. Okay? Pipes are being filled. This is all our five-axis and large machines cycles. The cycles are very long, more than one year like that. Okay?
Are these machines usually billed at any milestone levels, or are these three or four months level? At what interval?
Yes. Is it milestone level there?
It is at milestone level. Second question would be on that you currently have an order backlog of about INR 4,500 crores, which I believe you should be able to deliver it between eight to twenty-four months or so. Post the capacity expansion, is there a possibility that we will see accelerated deliveries post September or how is the delivery timeline structured out of this INR 4,500 crores of order backlog?
Basically, this INR 4,500 crore backlog, once my delivery will start furthermore, okay, we will be able to receive furthermore orders. Right now, we are tied up and we are not able to give the delivery for this kind of a special machine less than two years like that. Okay? Once that will be improved, we will see furthermore upside on that in order book side also. That we are able to see from next year onward. Once my customers also have been confident about the delivery, we'll be able to increase over there basically.
Understood, sir. And sir, probably if I can squeeze in one last question. When we are talking about the international markets, mainly the European markets, is it more skewed towards the aerospace side or towards the defense side? Because I believe maybe the growth dynamics are slightly different for both the end markets. How should we think about which end market are you delivering or serving more?
Basically, my customers are common. Okay? Let's say these customers, let's say General Electric, GE, manufacturing aerospace as well as for defense. Okay? We do not know what is the exactly output is going from where there. Okay? Largely in Europe right now, all the French companies and everyone, those of our customers are mainly on the defense side there.
Mainly defense. Understood, sir. That was it from me. Best of luck.
Thank you.
The next question comes from the line of Keshav Bharadia from Wallfort Financial Services. Please go ahead.
Hello, sir. Thank you for taking my question. Sir, congrats on being able to generate a positive cash flow at the end of H1 compared to last year and Q4 of last year. Sir, just given the nature of the business and our working capital cycle, what gives us the confidence to be able to sustain cash flow momentum going forward, possibly by the end of the year and once our incremental capacity goes live next year?
Yes, Keshav, thank you very much. You pointed out a nice topic there. Now we entered based on our line on a cash flow and we are looking for the more better momentum from here to end of this year. We will see much better numbers in terms of operating cash flow in coming quarters there.
Understood, sir. Sir, another question I had was in regards to the recent line that we acquired in Tumakuru in Karnataka. Is that for the next leg of growth or are we looking at something else over there in terms of once our entire 10,000 capacity goes live, are we looking for further increase in capacity over there or just?
This question I have answered last time to some other guy. I'll give you the answer to you here. Basically, our southern customers, South India customers, are very high on this electronic manufacturing and all. We are going near to them to support in terms of a spare part, in terms of their application. We are going to have Demo centers and warehouses and quick service supports to them basically. We are not looking to be any furthermore large capacity expansion over there, but rather we are going near to the customers to have some small assemblies and to have some fixturing, some solutions, and R&D activity near to my customers over there basically.
Understood, sir. Sir, I also saw in our investor presentation that we have plans to enter the semiconductor segment two years down the line. Could you throw some color as of today what our plans are for that segment and how we're looking at creating a presence over there?
Basically, we are in purely a capital, let's say, the machine manufacturer. Our focus area is to build the machines. Right now, our R&D team is focusing and working with the semiconductor manufacturing machine builders and all. We are making some of the equipment for them. We are designing and developing one or two products right now. It is a very high precision zone for all of us. This is the first time it is happening in India also. We are learning and we are expecting within two years it should be commercialized over there in terms of manufacturing processing of this semiconductor there.
Got it, sir. Thank you so much. I'll come back in the queue.
Thank you.
Participants, if you wish to ask your questions, you may press star and one. The next question is from the line of Depesh Kashyap from Invesco. Please go ahead.
Yeah. Hi, sir. Thanks for taking my questions. What is the total CapEx that you're looking at for this year?
CapEx, we have a plan for a total INR 450 crores. Okay? And I think largely we will finish, let's say, three-fourths % will finish this year itself.
Sorry, how much %?
Let's say almost 75%-80% we will reach this year itself.
Okay. Pending will be next year?
Next year, first half. Yeah. First quarter is next.
Okay. Understood. Understood. And sir, the total capacity utilization that you have given in the first half is around 80-odd % and you're targeting around 90% over the full year. That will come to around 100% utilization in the second half, right? Is that even possible? Just wanted to understand how much is the realistic capacity utilization that you can do in a quarter?
Basically, this first half average will reach 81%.
Yeah.
Okay? Definitely, in the second half, we will reach to almost 90%-100% in between there. We may hit to, right now, we are looking to be on the last quarter, we will hit more than 100% there.
100% is possible, you're saying?
Yeah. Yeah. On a policy basis, let's say in the last quarter, everybody's pool and push are like that. So we are able to execute those things like. Yeah.
Understood. Sir, based on the order book that you have given the number, right, and crores you have given that, if I just roughly do the math, that is coming out to be 11,000-12,000 machines that you have to deliver. Can you give a timeline of what is the execution timeline that you have to give? With the new capacity coming in next year, how much can you deliver in next year if you can give this a broader understanding?
Next year, we already committed to our customers to close to 10,000 machines.
10,000 machines.
Yeah.
Okay.
That is [cross talk]
Do you think it's possible when your new capacity is coming in September? Do you think you can be able to do that? Because 10,000 is a very big steep jump from the current delivery that we'll do this year, right?
I think that's our commitment and we try to achieve that. I think around in between 8,500 to in between [Foreign language] . 9,000 is definitely we are going to show there.
Understood. Sir, lastly, though, we are happy to see the positive operating cash flow, but still a very small number, right? What is your target for this number for the full year? What are the things that you are doing to improve this operating cash flow?
Depesh is just the beginning.
Sure. Sir, the growth is [cross talk]
Let's say last year, let's say it was −INR 100 crores and it plus. This first half, we have crossed INR 50 crores. Incrementally, it will be more than this basically.
Sir, last year the growth was also 35%-40%. This first half, our growth is around 15-odd %. That is what I am asking. Though the growth slowed down, generally, operating cash flow should ideally improve, right? Anyway, you are saying the second half we should see a meaningful improvement in the numbers that you are saying?
Correct. Meaningful improvement.
Got it, sir. Got it. Thank you, sir. All the best.
Thank you, Depesh. Thank you.
Thank you. The next question is from the line of Nishant from Kotak AMC. Please go ahead.
Hi, sir. Is my voice audible?
Yes. Audible. Clearly.
Yeah.
Thank you so much, sir, for the opportunity. Just a couple of quick questions, sir. One, alluding to my colleague's point on the Huma controller, what is the timeline you're looking at for kind of coming out with that controller? When can we expect that 4%-5% incremental margins in your overall financials? That's my first question, please.
It's a little bit longer journey. The prototype is the total we are looking to be in the next 12-18 months.
Okay. Sir, currently, you were saying that you're vertically integrated. I just wanted to understand if a certain cost of a machine is fixed, how much of it is currently built in-house and how much of it is kind of imported?
Still, in our total purchase, we have close to 30% is imports. Particularly, there is still, let's say, the CNC controllers, drives, motors, specific bearing elements. Some of the people are, let's say, they have given from India, but that is all our import product. Very high precision bearings and all. The hydraulic components, the pneumatic component, and basically all the sensors are coming from Germany and Japan there.
Okay. So 70% is in-house, 30% is imported. Correct?
Yeah. Yeah.
Okay. That's it from my side. All the very best for the future, sir. Thank you so much for the opportunity.
Thank you.
Thanks. Take care.
Thank you. Due to time constraints, this was the last question for today's conference call. I now hand the conference over to the management of Jyoti CNC Automation Limited for their closing comments. Over to you, sir.
Thank you, sir. Thank you all for joining us today. I hope we addressed all your questions. We remain committed to keeping the investment community informed of the regular updates on any development in the company. For any further information or inquiries, please feel free to reach out to us or SGA, our investor relations advisers. Thank you very much to all of you, and have a wonderful day ahead to all of you.
Thank you. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.